Stop comparing it to Vega 10. Compare it to the Polaris RX 480, before AMD threw caution out to the wind and factory overclocked all their cards to the max with the RX 580 or the respun 590. If they literally doubled the performance of the RX 480, it would be about 6% faster than Vega 64. Doubling of performance would be pretty damn impressive. Nvidia didn't come close to that with either Kepler from Fermi (new arch and new node) or with Pascal from Maxwell (also new arch with new node).
How acceptable the performance is depends on three factors: die size, power consumption, and price.
Polaris 10 was the successor to Pitcairn - both were low/midrange chips with a similar die size (212mm^2 for Pitcairn, 232mm^2 for Polaris 10) and a 256-bit bus width. Performance improvements from R9 270X (Pitcairn) to RX 480 (Polaris 10) ranged from 85% at 1080p to 96% at 4K (
source). And the R9 270X is more power-hungry, maxing out around 175W when the RX 480 barely breaks 150W. This indicates that a full process node gain plus improved architecture
should be able to nearly double performance, at least given RTG's modest starting point. RTX 2070 is
about double RX 480's performance, so this is a sensible target, and not just because AMD put it up against RX 5700 in the keynote.
drchoi71 on Reddit
put together a photo of the leaked PCB with the new Navi die at correct scale. From that, he estimated about 252mm^2 for Navi's die size. If that is accurate, then it strengthens the argument to treat it as the 7nm successor to 14nm Polaris 10 and 28nm Pitcairn. We are pretty sure from the PCB that it is going to have a 256-bit memory bus, this time with GDDR6. Let's give AMD the benefit of the doubt (usually OK on the CPU side these days, but a risky thing on the RTG side) and assume that if it beats RTX 2070 by 10% on an AMD-favored benchmark, it can at least come within 5% of RTX 2070 in overall gaming performance averaged over a variety of titles (granting that a few games on the other side will favor Nvidia heavily instead). That leaves power consumption and price as the wildcards.
When Pitcairn debuted, the top SKU (7870 GHz Edition) cost $349 and
maxed out at 144W of power consumption (though it was technically rated for 175W TDP). When Polaris 10 debuted, the top SKU (RX 480 8GB) cost $239 and
maxed out at 167W, violating its formal 150W TDP (I believe a firmware update later fixed this).
Therefore, we have a right to expect that the top RX 5700 SKU should come to the table at a price point of $239-$349, and a TDP around 150W. If they blow up the power budget way beyond that, or try to price it at $399 or above, I think that would count as a failure from a consumer perspective.